Wall Street's Big Tech Up First Time In 6 Days On Broad Stocks Rally

NEW YORK (UrduPoint News / Sputnik - 16th September, 2021) US technology stocks posted their first daily gain in six days on Wednesday, joining blue chips and industrial stocks in a broad rally, as economic recovery appeared on track while moderating inflation signaled the Federal Reserve will not be in a rush to taper its generous stimulus programs.

The Nasdaq Composite Index, led by Big Tech Names such as Facebook, Amazon, Apple, Netflix and Google, closed at 15,162, up 124 points, or 0.8 percent. The tech-heavy index lost a cumulative 2.1% over five previous sessions.

The blue-chip S&P 500 and broad-based Dow Jones Industrial Average indexes also rallied as oil prices to bond yields rose on optimism that the Delta variant of the coronavirus might not blight recovery.

The S&P 500, which groups the top 500 stocks on the New York Stocks Exchange, rose 39 points, or 0.9%, to settle at 4,482.

The Dow Jones, comprising mostly industrial stocks, gained 237 points, or 0.7%, to finish at 34,814.

Stocks rallied after the Empire State manufacturing survey's general business conditions index for New York posted a reading of 34.3 in September, sharply higher than the 18.

3 for August. Economists polled by US media had expected a reading of 18.1 for September.

"The Empire manufacturing index is telling a new story about the direction of the economy," Ed Moya, head of Americas research at the online trading platform OANDA, said. "One report does not make a trend, but if this positive theme spreads across all the other regional surveys, Wall Street could rush to upgrade forecasts for how the US economy will finish the year."

The Federal Reserve, meanwhile, reported that US industrial production grew by a slower 0.4% in August after a 0.8% expansion in July as factory outages forced by Hurricane Ida held up output.

The industrial production report is important to the Federal Reserve because it could influence its decision on when to tighten its rather accommodative stance on US monetary policy.

The Federal Reserve has been buying $120 billion in bonds and other assets since the COVID-19 outbreak of March 2020 to support the economy. It has also been keeping interest rates at virtually zero levels over the past 18 months.

Subject: Wall Street's Big Tech up First Time in 6 Days on Broad Stocks Rally